Table 17-3
Traci's Hairstyling is one salon among many in the market for hairstyling. The following table presents cost and revenue data for Traci's Hairstyling.

-Refer to Table 17-3.If the government forced Traci's to produce at the efficient scale of output,what is the maximum profit Traci's could earn?

Question

Table 17-3
Traci's Hairstyling is one salon among many in the market for hairstyling. The following table presents cost and revenue data for Traci's Hairstyling.
 
-Refer to Table 17-3.If the government forced Traci's to produce at the efficient scale of output,what is the maximum profit Traci's could earn?

Quizplus · Accepted Answer

The efficient scale of output is where average total cost is minimized. The maximum profit is calculated as total revenue minus total cost at this output level.

Table 17-3 Traci's Hairstyling Is One Salon Among Many in the Market